Yamana Gold Profit Declines On Lower Commodity Prices; But Tops View

(RTTNews) - Yamana Gold Inc. (AUY, YRI.TO) said Tuesday its profit for the third quarter declined from a year ago, due mainly to lower realized commodity prices and a drop in equity earnings from its interest in Alumbrera mine in Argentina.

Yamana Gold's net earnings for the third quarter dropped to $43.5 million or $0.06 per share from $60.0 million $0.08 per share in the similar quarter last year.

Adjusted earnings for the quarter declined to $69.5 million or $0.09 per share from $177.6 million or $0.24 per share a year ago. On average, sixteen analysts expected the company to earn $0.08 per share for the quarter. Analysts' estimate typically excludes one-time items.

Yamana Gold's revenues for the third quarter were $456.7 million, down from $611.8 million in the corresponding quarter last year. Six analysts had a consensus revenue estimate of $489.80 million for the quarter.

The company's sales volume for the quarter included 232,284 ounces of gold, 2.2 million ounces of silver, and 35.7 million pounds of copper, excluding Alumbrera which is accounted for as an equity investment. In the year ago quarter, sales included 252,813 ounces of gold, 2.2 million ounces of silver, and 37.1 million pounds of copper, excluding Alumbrera.

The decline in revenues and mine operating earnings were attributed to lower metal prices and lower volume of gold and copper sales. Lower metal prices accounted for 74 percent of the variance in revenues compared to the year ago quarter.

Yamana Gold also declared fourth quarter 2013 dividend of $0.065 per share, to shareholders of record at the close of business on December 31, 2013, payable on January 14, 2014.

Yamana closed Tuesday's regular trade at $9.75, down 0.47 or 4.6%, on a volume of 7.98 million shares on the NYSE. In after-hours, the stock further shed $0.02 or 0.21%, to trade at $9.73.

The stock slipped C$0.43 or 4.04%, to close at C$10.22 on a volume of 3.77 million shares on the Toronto Stock Exchange.